Business / Markets
Monday, 08 Aug 2016 11:51 EATnewsdesk@kenyafreepress.com
Kenya’s insurer Britam Holdings plans to open more branches in Tanzania as the company seeks to increase its market share in the country.
The company has launched its operations in Arusha, bringing to eight the number of branches in the country, with offices in Dar es Salaam, Mwanza, Dodoma, Mbeya, and Mtwara, with more branches expected to be opened in the near future.
The branch will serve as an outlet for the company to reach the untapped markets in the Northern zone of the country, where insurance penetration is still low. It will offer an array of services and products in insurance, asset management, banking and property.
The insurance industry in Africa and Tanzania in particular has witnessed an upsurge in recent years, with Tanzania becoming a key regional emerging insurance market.
With the Tanzanian economy recording an average annual growth rate of 7%, potential for further growth of the insurance sector in the country remains high. “Britam plans to roll out more offices in the rest of the country, and offer our customers a bouquet of financial services with ease and convenience, all under one roof,” said Mr Stephen Wandera, Principal Executive Director, Britam Holdings Ltd.
Mr Wandera said this was part of the Britam group’s overall strategy of expanding its general insurance business and widening its foot print in Tanzania, while tapping into the un-insured segments of population.
Britam, he said, was willing to transfer its skills and expertise to Tanzania in a bid to increase insurance penetration, while leveraging on its strong heritage of the group built over the last 50 years, a geographical footprint in seven African Countries, a strong human capital base, and a strong IT base and technological platform. Insurance business in Tanzania has continued to operate under a liberalized environment.
In the wider national economy, insurance serves as a financial intermediary worth over TZS 500 billion. “In the last five years, the insurance industry in Tanzania has recorded an average of 19 percent growth.
And in the intermediation sector, insurance has posted the highest rate of growth higher than the national GDP, with the potential to become one of the largest sectors of our economy,” said Mr Stephen Lokonyo, Chief Executive Officer Britam Insurance Tanzania.
He said the Tanzanian government had put in place an effective policy framework to help further develop the insurance sector in the country.